Vicat's net underlying 2018 profits 12% ahead

Vicat's turnover edged ahead by 0.7 per cent in 2018 to EUR2582m and EBITDA eased by 2.2 per cent to EUR435m, while at unchanged exchange rates and other parameters the changes would have been +5.9 per cent and +2.7 per cent, respectively. The trading profit was ahead by 0.8 per cent to EUR249m, with the advance at unchanged parameters being 5.9 per cent. The net financial charge was 31.6 per cent or EUR8.9m lower at EUR19.3m. After a reduction in the contribution from associates from EUR5.6m to EUR3.7m, the pretax profit improved by 8.8 per cent to EUR227.5m. Following a 25.3 per cent higher tax charge of EUR66.7m and a 28.9 per cent lower minorities charge of EUR9.3m, the net attributable profit emerged 6.3 per cent ahead at EUR151.1m. 

In terms of activity split, turnover in cement eased by 0.5 per cent to EUR1486m and accounted for 50.1 per cent of the total, compared with 51.09 per cent in the previous year and 52.9 per cent in the year before. Cement deliveries declined by 0.5 per cent to 22.83Mt and EBITDA decreased by 6.7 per cent to EUR330m. The concrete and aggregates operations turned over 0.2 per cent more at EUR1010m and EBITDA advanced by 32.3 per cent to EUR85m with volumes declining by 7.2 per cent to 22.66Mt in aggregates and by 6.7 per cent to 9.04Mm³ in ready-mixed concrete. Other products and services produced a 1.6 per cent increase in turnover to EUR432m while the EBITDA contribution declined by 26.6 per cent to EUR19m. In terms of turnover, France accounted for 36.8 per cent, Switzerland and Italy for 15.1 per cent, the USA for 15.6 per cent, Asia for 21.8 per cent and Africa and the Middle East for 10.6 per cent.

France
The French turnover improved by 6.7 per cent to EUR950m. EBITDA rose by 14.4 per cent to EUR148m and the trading profit advanced by 32.5 per cent to EUR92m. Cement deliveries were three per cent ahead overall, and prices improved, more so for exports than in the case of domestic deliveries. EBITDA increased by 3.3 per cent. Turnover in aggregates and concrete rose by 4.6 per cent as volumes were more than two per cent ahead in aggregates and prices improved. In ready-mixed concrete volumes eased, but prices were ahead. Other products and services saw turnover up by 9.8 per cent but EBITDA down by 8.4 per cent. 

Rest of Europe
In the rest of Europe, turnover declined by 4.9 per cent to EUR390m. EBITDA fell by 7.8 per cent to EUR87m and the trading profit was off by 2.5 per cent to EUR60m. The Swiss turnover came off by 5.7 per cent to EUR375m and the EBITDA 8.7 per cent lower. The Swiss cement turnover declined by 6.7 per cent with volumes being off by some seven per cen. EBITDA declined by 3.8 per cent. The turnover in concrete and aggregates same off by 3.2 per cent. Volumes declined by almost seven per cent in concrete and by almost nine per cent in aggregates. EBITDA showed a nine per cent thanks to price improvements. The other Swiss activities reported a 7.9 per cent reduction in turnover and EBITDA dropped by 38.6 per cent following the previous year’s 91.6 per cent advance. The Italian turnover advanced by 20.2 per cent as volumes were up by almost 11 per cent and prices recovered. EBITDA rose by 33.2 per cent. 

USA
The US turnover improved by 2.9 per cent to EUR404m and EBITDA was up by 19.4 per cent to EUR72m. The trading result advancing by 34.9 per cent to EUR46m. Cement volumes rose by almost four per cent and the turnover improved by an underlying nine per cent and by a reported 4.2 per cent. EBITDA increased by an underlying 10.8 per cent.  Turnover in ready-mixed concrete was ahead by 3.3 per cent as volumes declined by almost three per cent. California and the southeast suffered from fires and EBITDA fell by 44.3 per cent. 

Asia and Indian subcontinent
The Asian turnover declined by 2.5 per cent to EUR564m, while EBITDA came off by 17.5 per cent to EUR97m. The trading profit fell by 23.9 per cent to EUR54m. The Turkish turnover fell by 23.3 per cent to EUR165m and EBITDA dropped by 40.6 per cent. In cement the turnover was 21.3 per cent lower, reflecting the fall in the value of the Turkish currency, but cement deliveries were ahead by almost 12 per cent ahead. However, on translation EBITDA fell by 41.9 per cent. In aggregates and concrete, the turnover declined by 25.6 per cent. Volumes fell by more than 14 per cent in ready-mixed concrete and by in excess of 30 per cent in aggregates. EBITDA declined by 10.5 per cent, though at the underlying level there was a 23.8 per cent improvement.

In India turnover improved by 17.9 per cent to EUR336m with cement volumes being ahead by more than 20 per cent to almost 6.6Mt, with prices increasing in response to the inflation. EBITDA declined by 20.9 per cent as the margin fell from 20.9 per cent to 15.4 per cent.

In Kazakhstan volumes increased by almost 15 per cent in a dynamic market. Turnover was 37.5 per cent ahead at EUR63m. EBITDA advanced by 53.3 per cent and the margin improved from 30.1 to 37 per cent.

Africa and the Middle East
The African and Middle Eastern turnover declined by six per cent in euro terms to EUR274m and EBITDA fell by 28 per cent to EUR31m. At the trading level a EUR3m loss was incurred compared with a EUR11m profit. In Egypt the turnover was 40.4 per cent lower, volumes declined by almost 18 per cent and a loss of EUR10.8m was incurred. The west African turnover increased by 4.1 per cent to EUR235m. Cement volumes were slightly better in Senegal but declined in Mali and Mauritania, while aggregates deliveries rose by more than 11 per cent in Senegal.

2019 outlook
The current year should, in the view of the Vicat management, see continued improvements the USA, India, France and in Kazakhstan and more modest improvements in Switzerland and Italy and the beginning of a gradual improvement in Brazil.